Government gives a hand to small firms

AFP, TAIPEI

The government yesterday said it would put an extra NT$8 billion (US$266 million) into a credit guarantee fund aimed at helping smaller companies as the global economy slows.

The fund, designed to help small and medium enterprises short of collateral secure external financing, will provide an additional coverage of NT$112 billion in loans after the money has been added, the Presidential Office said.

The move is part of a recent series of government measures aimed at countering the fallout for the export-dependent economy from Europe’s deepening debt crisis.

The authorities announced earlier this week that they would intervene in the stock market and spend up to NT$500 billion to buy stocks.

The TAIEX has dived 29 percent since the beginning of the year, and the fall is one of the chief complaints against President Ma Ying-jeou (馬英九).

The government recently downgraded its economic growth forecast for this year to 4.51 percent from 4.56 percent.